Singapore Opens 500-Ton Gold Vault as Central Banks Sustain Purchases

The Monetary Authority of Singapore launched a gold-vaulting service for foreign central banks. The facility can hold up to 500 tonnes and reflects expectations that central bank demand will continue, according to BeInCrypto. Singapore plans tax exemptions for wholesale gold services, including vaulting and refining, and its gold clearing system is expected to begin live trading in the first quarter of 2027. Metals Focus’ Nikolas Kavalis said storage alone would not create the liquidity needed to compete with London. In June, a record 45% of central banks said they planned to add gold, while 89% expected global holdings to rise, according to the World Gold Council (WGC). Central banks bought 321 tonnes in the third quarter, above the five-year quarterly average of 227 tonnes; the WGC expects 2026 purchases to at least match 2025. China added about 25.8 tonnes in October, its biggest monthly increase in three years. Gold traded at $4,043.27 on Wednesday, about 28% below its January record of $5,608.35 and down over 6% in 2026. It fell nearly 3% Tuesday after hotter-than-expected U.S. inflation, as markets priced in about a 100% chance of a December Federal Reserve rate hike. The WGC found a -0.7 correlation between central bank demand and gold’s quarterly returns since Q3 2022, but said the relationship is too unstable to establish a firm price floor.